The National Bank of Kazakhstan has revealed its strategy for investing the National Fund’s funds in alternative products, emphasizing the gradual increase of the funds injected into its investment component to $2.5 billion by 2025. Launched in 2023, this portfolio will have a 3% savings portfolio allocation as a key element of asset diversification.
National Bank officials pointed out that the decision was made as part of efforts to balance the National Fund’s assets and improve its profitability. This in turn contributes to further diversification and mitigation of risks.
The National Fund Management Concept until 2030, developed by the country’s main banks and approved by President Kassym-Jomart Tokayev, defines strategic principles and approaches aimed at maximizing profits. This includes the use of defensive strategies, factor investing and also pays attention to ESG (environmental, social and governance) principles.
The structure of the National Fund consists of a stabilization portfolio and a savings portfolio. The former is invested in short-term government bonds issued in developed countries, while the latter is more diversified and includes a wide range of assets, including alternative products and a gold portfolio.
The state fund’s assets now stand at $60.7 billion, despite 35.5 trillion tenge (about $77 million) being withdrawn over the past decade, mainly during the pandemic.
